Supreme Court prevents enforcement of CTA

1/24/2025

The U.S. Supreme Court granted a nationwide injunction blocking enforcement of the Corporate Transparency Act (CTA), which mandates businesses to report beneficial ownership information to the Financial Crimes Enforcement Network. Other injunctions remain active, but FinCEN announced that reporting companies are not required to file beneficial ownership information (BOI).

In Texas Top Cop Shop v. Garland, a case reviewed by the Supreme Court, the plaintiffs contested the constitutionality of the CTA, which mandates covered businesses to report their BOI to FinCEN. Last December, the Fifth Circuit Court of Appeals reviewed the case and overturned a nationwide injunction initially imposed by a Texas district court judge. See more on the case here.